Namco Bandai blames arcade closures on Wii

Tekken-maker's shares plummet on the news that it will be shutting down 50 arcades in Japan; executives point finger at Nintendo's popular console.

Japanese publisher Namco Bandai has reported that it will be closing a large number of its arcades, according to a report by Reuters. The company is citing the growing popularity of Nintendo's Wii in Japan as the main reason that arcades are losing popularity.

Company spokesperson Yuji Machida commented, "A lot of the types of games that people played at an arcade can now be done at home [with the Wii]."

Wii Fit recently launched in Japan with the Wii Balance Board peripheral, which allows gamers to practise yoga and other balance exercises, including virtual surfing and ski jumping similar to some arcade games. The Wii Blaster also allows gamers to use their Wii Remotes like arcade light guns to shoot on-screen enemies.

He added that another factor was the growing price of petrol, meaning that Japanese families have been cutting back on their trips to big shopping centres to save on fuel costs.

The company also released its figures for the company's financial third quarter, ending December 31. Net sales were up slightly over the same period the previous financial year at ¥336 billion/$3.2 billion (compared to ¥331 billion/$3.1 billion), operating income was down 20 percent to ¥26 billion/$244 million (compared to ¥32 billion/$300 million), and net income was down to ¥15 billion/$141 million (compared to ¥20 billion/$189 million).

Namco Bandai also amended its projections for the full financial year ending March 31--net sales are now expected to total ¥465 billion/$4.4 billion, a raise of 1.3 percent, whereas operating income has been decreased by 19.5 percent to ¥34 billion/$320 million, and net income down 32 percent to ¥16.5 billion/$155 million.

Namco Bandai's shares were down to ¥1,095 ($10.30) at the close of the Tokyo stock market today, a 27 percent slide since Tuesday morning.

223 Comments

  • glhx1rush

    Posted Feb 11, 2008 11:15 am PT

    Agree/DITTO: jedinortd_basic's comment . Arcades were cool in their day (1980's), but the magic is gone. When the price to play a game went up, or over a quarter then that was all she wrote for that idea. Sorry Namco Bandai, it's called progress. As for increased fuel prices, you can blame speculators and taxes for most of those costs, and that is affecting every aspect of life, from shopping, driving and going to the arcade. If your business requires people to drive to it, then you are going to take a hit, unfortunately those costs are being sent right back to us consumers, who don't get a pay raise every time the cost of Gasoline increases. The more we have to spend on fuel, the less we spend on something else. Home based entertainment systems are the better/more affordable option now.

  • kith_kat

    Posted Feb 10, 2008 5:50 pm PT

    well maybe its time namco makes some real wii games instead of spinoffs and collections

  • pro_gamer12345

    Posted Feb 10, 2008 5:04 pm PT

    I still go to the arcade time to time with my friends. But the game Time Crisis and those racing games never get old. But after a good round or 2 i stop playing cause the game got too expensive.

  • ss_goku26_2003

    Posted Feb 10, 2008 3:21 pm PT

    Dave and Busters is great but whatever happened to great original games D&B has great games don't get me wrong but way too expensive, plus I do not consider D&B$ as an arcade it is more of a resturaunt/amusement park/carnival, real arcades were seriously for hardcore fighting gamers and people that didn't want to spend alot of money on gaming D&B is just a great place to show off how much money a person has and to impress somebody.

  • cfamgcn

    Posted Feb 10, 2008 10:14 am PT

    I agree with jedinortd_basic... when arcades started to cost more and more, I lost interest on them (I just didn't want to waste so much money!)

  • jedinortd_basic

    Posted Feb 10, 2008 6:32 am PT

    i lost interest in arcades when they started to cost more than a quarter to play lol.

  • jedikevin2

    Posted Feb 9, 2008 9:55 pm PT

    I hope yall realize that, in japan arcades are as numerous as fast food stores are here. This isn;t the death of arcades. Oh, the US arcades are coming back. Just look at Dave and Busters. THe evolution of the arcade. If you want to invest in a company, invest in them. They have been poppin up everywhere around the country now.

  • nate1222

    Posted Feb 9, 2008 4:08 pm PT

    PS1 and N64 was the 'begining of the end' for arcades. They had the same graphics quality and you could play them on your couch. I think the Wii Virtual Console should bring more arcade classics out.

  • Dj_Lizz

    Posted Feb 9, 2008 12:48 pm PT

    da,m noooooo WANT ARCADE BACK! ,sick bastard Wii is gonna kill the arcade?! hell nooooooo i want ma arcade back! that is the only place where I enjoy playing with friend ,family ,date with ma girl . curse you son of a nintedo!!damn!

  • cooldude03

    Posted Feb 9, 2008 8:24 am PT

    Back it the day the games in the arcade looked and controlled better than console games. Games were ported from the arcade to console. Consoles couldn't handle the arcade power. Now even top end arcade games are easily ran on consoles, sometimes even better. The Wii may contribute to Japan's down sizing of arcades, but I think Wii or no Wii it was just a matter of time until this happened. I for one love the idea of arcades and enjoy arcade games. There's just something about drinking a beer and geeking out playing games at Dave and Buster's in Chicago that brings out my inner hardcore gamer in me.

  • superkoolstud

    Posted Feb 8, 2008 6:37 pm PT

    Wii isn't a disease it is simply FUN to play and that is the reason it will continue to beat PS3 and 360 which are not fun and just the same boring crap with better graphics.

  • staticgod posted Feb 8, 2008 4:19 pm PT (does not meet display criteria. sign in to show)

    staticgod

    Posted Feb 8, 2008 4:19 pm PT (hide)

    nintendo wii is a disease and nothing more. and thats a shame for hardcore gamers that they are top sellers.

  • Crazy_Assassin

    Posted Feb 8, 2008 1:20 pm PT

    Speaking and thinking about the aracdes. When will MS bring a good light gun game to the 360 and how about a light gun that can be used on monitors and HDTV. The 360 is becoming the best platform for shooters, MS needs to change things up a bit.

  • Crazy_Assassin

    Posted Feb 8, 2008 1:15 pm PT

    The arcades in the United States have been dead for many years. The advancement of home consoles over the years killed the arcades. I'm an old school gamer, i've been playing video games since 1982. I remember back in 1983 my best friend was the first in our neighborhood to get an Atari 2600, we thought the 2600 would be just like the games in the aracde. Man we thought our days of feeding the machine our quarters was over. Boy we were fooled. So I've been waiting for the day when a home console can produce the exact same game as the arcade. That happen a long time ago with the first playstation. I play aracde games when me and my wife go to the movies but other then that, the arcades don't have anything on the console. It's been a long time coming but the full arcade is finally at home.

    I can play many of those old school games through xbox live arcade.

  • N-Flamez

    Posted Feb 8, 2008 11:43 am PT

    i wish Namco would bring Tekken on xbox

  • KingovGames

    Posted Feb 8, 2008 11:03 am PT

    yeah it is sad, there used to be a lot of cute young butts to ogle at the arcades, I never even played any of the games lol.

  • unreal_master

    Posted Feb 8, 2008 11:00 am PT

    i love the arcade =(

  • chakan2

    Posted Feb 8, 2008 8:36 am PT

    Actually, I think the death of the arcade (here in the US at least) can mostly be blamed on online gaming, not one console or the other.



    The whole reason I used to go to the arcade was to play against/with other people. Now I can do that fairly easily online.



    Also, there's just not much in the arcade that I can't get at home. It used to be arcade games beat the hell out of home systems in terms of graphics and playability, but now if you build a really high end PC, it's going to be able to do everything an arcade cabinet can do (including emulating almost every game ever).



    I still go out and spend a ton of money on Pinball when I find a good one. But those are few and far between these days.



    If arcade manufacturers could come up with something new and interesting, I'd go and drop a wad of cash, but I haven't seen an interesting new game in the arcade in years. I'd love to see some new pinballs, or mabye another afterburner full cockpit, something...

  • bardkieran

    Posted Feb 8, 2008 7:51 am PT

    the issue is more arcade games need more involvement. standing up and mashing buttons isnt going to cut it much anymore outside of the fighting games. There needs to be more interactivity, more moving parts. Anyone ever play that whitewater rafting game? Crappy graphics, but fun as hell to play, plus a killer workout. I think more motion and elbowgrease type arcades might be the way to go.

  • superkoolstud

    Posted Feb 8, 2008 4:05 am PT

    Let's just get this out first. I live in Japan. There is about 1 arcade every mile. Arcades in japan are nowhere near dead. Sega owned arcades are very numerous here.

  • louzero

    Posted Feb 8, 2008 2:37 am PT

    Hey guys I like the Wii just as much as you but "Well they can start bringing these games to the Wii now, that solves everything" which you all seem to be saying, it isnt that easy. First, there is a whole lot of legal work that must be done if they are going to do that. Second, "the Wii is an arcade in your home!" Not true. The Wii uses a totally new control scheme and despite Nintendos great developers package, its still not easy to switch over, plus lets face it (I love the Wii do NOT FLAME ME) When it comes to processing power, data and graphical, the wii lags behind the other two systems in the market. Anyone want to burn down my house for that? Anyone? Anyone? Ok then, and finnally its an issue of pride. You really think "well Bill-son they put us out of business.....I guess we should get on our knees and beg for mercy huh? See if they will honor us by letting us make games for them?"

  • kavadias1981

    Posted Feb 8, 2008 12:46 am PT

    Hmm... well, here is an idea. How about you quit the arcade scene and start developing more on the Wii. That way you can actually make some money and increase shares. Come on Namco Bandai, use your business heads.

  • Dreski83

    Posted Feb 7, 2008 11:51 pm PT

    Arcades as a whole are dead... its sad, no matter where you are at Then again, the money I spend on playing games at home and online compared to the arcade is some what of a financial gift to my bank account... I still miss arcades tho.

    Shame for Namco-Bandai to assume Nintendo is the sole cause of their losses... not very cl@ssy on their end...

  • TryMe01

    Posted Feb 7, 2008 10:53 pm PT

    This should be the start of Namco Bandai bringing these games to Wii

  • ss_goku26_2003

    Posted Feb 7, 2008 10:24 pm PT

    I just hope that this doesn't mean a friend of mine is right about another game crash coming soon. If that happens again who will it be to save the gaming industry, will it be Nintendo again. Hmmmm we will see.

  • 123625

    Posted Feb 7, 2008 9:50 pm PT

    Ive been to an arcade or two but its just a waste of money when it comes down to it.

  • DraginHikari

    Posted Feb 7, 2008 9:33 pm PT

    They were alot of fun when I was younger... but really I can't bring myself most of the time to pump in quarter after quarter into those machines

  • X-RS

    Posted Feb 7, 2008 8:45 pm PT

    this sucks cuz some games you just cant play on a console. simple as that.

  • SonicRaptor

    Posted Feb 7, 2008 8:40 pm PT

    I'm actually surprised Japanese arcades held off this long considering the rest of the world axed arcades a decade ago.

  • Wolfos

    Posted Feb 7, 2008 8:36 pm PT

    Namco arn't one to jump to conclusions but i don't think this is justified enough. Arcades might be rare now but they lost a lot of business from the 90's when games for consoles got better in terms of play-length and styles that simply were not done in the arcades. After a while it simply got to the point that, in maybe the last 5-6 years, only the die-hard fighting fans/lovers of "the old core games" really went to arcades. Saying that Nintendo are to blame for the death of the arcade dosn't seem fair when the arcade itself has been slowly droping in popularity, though it would be more fair to say "They aided the demise". Its a shame really as with things like SF4 and more coming to arcades, i find it sad to really see. Like OJdaLIONking, ive been to Namco Land arcades in Japan, it is one of the most woundeful places but they simply don't do business anywhere but JPN anymore. :/ I don't think this news story really stands fairly. Namco need to really look into the market more for what people want.

  • pencilpusher69

    Posted Feb 7, 2008 8:32 pm PT

    It's called competition.

    Arcades died here and everywhere else in the world over a decade ago.

    Why would they think that Japan wouldn't eventually see their arcade market fade out too?

  • OJdaLIONKing posted Feb 7, 2008 8:26 pm PT (does not meet display criteria. sign in to show)

    OJdaLIONKing

    Posted Feb 7, 2008 8:26 pm PT (hide)

    I feel more justified in my feeling that the wii is killing all the kinds of gaming i like, first with its shallow casual games driving publishers away from developing more substantial things, and now this. Have you ever played at a namco arcade in Japan? Those places are magical, it's like disneyworld for a gamer. All kinds of cool things you wouldn't think of anywhere else, like 8 player in-cockpit gundam games, real time strategy card games, and of course newer competitive fighting games can all be found at places like Namco tower in Kyoto.

    However, it looks like that might be over soon because people would rather play what are, for the most part, glorified minigames on the wii. I worry about the future of gaming if the Wii fad doesn't go away.

  • peacenutman posted Feb 7, 2008 7:47 pm PT (does not meet display criteria. sign in to show)

    peacenutman

    Posted Feb 7, 2008 7:47 pm PT (hide)

    That sucks, Japan is the last stronghold of arcades, it Japan loses its ground, then arcade is finished. Goddam Nintendo.

  • shoeman12 posted Feb 7, 2008 7:38 pm PT (does not meet display criteria. sign in to show)

    shoeman12

    Posted Feb 7, 2008 7:38 pm PT (hide)

    ...boo hoo? why should we care?

  • PumpkinBoogie

    Posted Feb 7, 2008 6:10 pm PT

    Yeah, dkdk999, I'm with you--being a young'un on the 80s baby side of things (LOL), I damn sure miss the days of going to arcade or even those little strip-joint mall things and beggin' my momz for a ass-load of quarters just to spend on Pac-Man.....damn those were the days....

    oh snap...I digressed, didn't I? Anywayz, it is really sad at how the arcades have kinda falling into the background; I always admired how Japan was at least one of the "modern technological society" that at least tried to keep that old school arcade vibe alive. But of course, Japan is now fully starting to experience what we in the west (US, Canada, UK, etc.) have already gone through....

  • zombey1333

    Posted Feb 7, 2008 6:09 pm PT

    Tis a shame that arcardes aren't as popular as they used to be...Sadly, ever since the atari, it's been inevitable.

  • glitchgeeman

    Posted Feb 7, 2008 6:08 pm PT

    So the Japanese finally realize the fate of arcades that we in America have known for years. Arcades are fun, but they simply can't keep up with consoles. Besides, instead of pointing fingers, why don't they simply make those arcade games for the Wii? That'd be an easy way to make some sales.

  • Dunnie91

    Posted Feb 7, 2008 6:02 pm PT

    this better not happen in the us. i love dave and busters

  • matrixman2k posted Feb 7, 2008 5:58 pm PT (does not meet display criteria. sign in to show)

    matrixman2k

    Posted Feb 7, 2008 5:58 pm PT (hide)

    So, Nintendo is putting the final nails to the arcade coffin, and ending what them and Sega started back then... It's a fierce and tough climate out there - especially with the global worming and everything, as such only the strong shall survive! Ha, ha, ha...

    If you can't pull your weight then you deserve to be wiped off. That's what i say. Innovate man, what's the problem?

  • DSgamer64

    Posted Feb 7, 2008 5:54 pm PT

    Yeah, it's just too bad that arcade games are horribly dated in every way possible, games are old and people stop playing them because they are terrible. Who wants to play old Virtua Cop games and Cruisin' World? Those games could easily be put on the VC, all arcade games are possible but the fact is that console gaming has been overtaking arcades for at least 10 years. I remember when arcades were almost everywhere but they started closing down post 2000 since console gaming is convenient and much more affordable in terms of replay value of games and the overall cost.

  • Gen007

    Posted Feb 7, 2008 5:51 pm PT

    man arcades are still kicking in japan amazing i love their culture so much but i guess they cant even avoid home consoles

  • dkdk999

    Posted Feb 7, 2008 5:37 pm PT

    i wish arcades were still alive

  • Cyber-

    Posted Feb 7, 2008 5:14 pm PT

    Heres an idea make those games on Wii dingbat

  • Montrealien

    Posted Feb 7, 2008 5:12 pm PT

    History repeats itself.

  • Vash67

    Posted Feb 7, 2008 5:09 pm PT

    Looks like Japan is finally realizing the decline of the arcades we've known for years.

  • killerbrothers

    Posted Feb 7, 2008 5:08 pm PT

    Wow. Namco Bandai blaming Nintendo just because Wii is runing arcades. Odd. Just odd, considering that Namco developed some titles for Nintendo, like Donkey Konga, Mario Kart Arcade GP and StarFox Assault

  • Simba_Dude

    Posted Feb 7, 2008 5:07 pm PT

    Whenever I go to the arcade now all I play is DDR and old games one by one as I beat them since there really isn't anything new nowadays. If companies could spit out some good arcade games that makes every 25 cents you put into it worth your while. Instead of insane difficulty followed by a "game over insert more tokens" screen every 1-3 mins which frustrates people and makes them give up on it. I know I do unless I know how to manipulate the game to my advantage like DDR.

  • ss_goku26_2003

    Posted Feb 7, 2008 5:02 pm PT

    Yeah that is why I would love to live in japan always ahead of the U.S. in everything well almost everything lol.

  • kaelishida

    Posted Feb 7, 2008 5:01 pm PT

    at least in america u talking about? in asia (esp here in singaproe) the arcade is always full no matter what happens XD

  • ss_goku26_2003

    Posted Feb 7, 2008 4:58 pm PT

    The arcade were in alot trouble way before the wii came out , What arcades did and do need is more games, cause you seriously get tired of seeing the same old games. The only new games that hit the arcades around here is whenever a new DDR comes out. Hell My friends and I used to go to the arcades every weekend but that was about 6-7 years ago. If anyone is to blame it is the arcade industry themselves they should take responsiblity for their own actions or shall I say their non actions.

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